You are nearing the end of a long negotiation. Describe and evaluate 3 different tactics that you might use to close the deal. Which one is your preferred closing tactic? Why?

CONSIDER THIS:

After negotiating for a period of time and learning about the other party's needs, positions, and perhaps resistance point, the next challenge for a negotiator is to close the agreement. Negotiators can call on several tactics when closing a deal.53 Choosing the best tactic for a given negotiation is as much a matter of art as science.

Provide Alternatives

Rather than making a single final offer, negotiators can provide two or three alternative packages for the other party that are more or less equivalent in value. People like to have choices, and providing a counterpart with alternative packages can be a very effective technique for closing a negotiation. This technique can also be used when a task force cannot decide on which recommendation to make to upper management. If, in fact, there are two distinct, defensible possible solutions, then the task force can forward both with a description of the costs and benefits of each.

Assume the Close

Salespeople use an assume-the-close technique frequently. After having a general discussion about the needs and positions of the buyer, often the seller will take out a large order form and start to complete it. The seller usually begins by asking for the buyer's name and addressPage 47 before moving on to more serious points (e.g., price, model). When using this technique, negotiators do not ask the other party if he or she would like to make a purchase. Rather, they may say something like "Shall I get the paperwork started?" and act as if the decision to purchase something has already been made.54

Split the Difference

Splitting the difference is perhaps the most popular closing tactic. The negotiator using this tactic will typically give a brief summary of the negotiation ("We've both spent a lot of time, made many concessions, etc.") and then suggest that, because things are so close, "why don't we just split the difference?" While this can be an effective closing tactic, it does presume that the parties started with fair opening offers. A negotiator who uses an exaggerated opening offer and then suggests a split-the-difference close is using a hardball tactic (discussed later).

Exploding Offers

An exploding offer contains an extremely tight deadline in order to pressure the other party to agree quickly and is an extreme version of manipulating negotiating schedules. For example, a person who has interviewed for a job may be offered a very attractive salary and benefits package, but also be told that the offer will expire in 24 hours. The purpose of the exploding offer is to convince the other party to accept the settlement and to stop considering alternatives. This is particularly effective in situations where the party receiving the exploding offer is still in the process of developing alternatives that may or may not turn out to be viable (such as the job candidate who is still interviewing with other firms). People can feel quite uncomfortable about receiving exploding offers, however, because they feel as if they're under unfair pressure. Exploding offers appear to work best for organizations that have the resources to make an exceptionally attractive offer early in a negotiation in order to prevent the other party from continuing to search for a potentially superior offer.

Sweeteners

Another closing tactic is to save a special concession for the close. The other negotiator is told, "I'll give you X if you agree to the deal." For instance, when selling a condo, the owner could agree to include the previously excluded curtains, appliances, or light fixtures to close the deal. To use this tactic effectively, however, negotiators need to include the sweetener in their negotiation plans, or they may concede too much during the close.